{"id":225459,"date":"2023-07-19T10:00:29","date_gmt":"2023-07-19T10:00:29","guid":{"rendered":"https:\/\/www.markperlbergcpa.com\/cutting-costs-in-your-atlanta-business-right-now\/"},"modified":"2023-07-19T10:00:29","modified_gmt":"2023-07-19T10:00:29","slug":"cutting-costs-in-your-atlanta-business-right-now","status":"publish","type":"post","link":"https:\/\/prosperlcpa.com\/blog\/2023\/07\/cutting-costs-in-your-atlanta-business-right-now\/","title":{"rendered":"Cutting Costs in Your Atlanta Business Right Now"},"content":{"rendered":"
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Though things might be tight economically for your Atlanta business, keep in mind, cutting corners can become a real issue.<\/p>\n

Take for example fake reviews that are so pervasive online. Some business owners are tempted to buy reviews to get their product or service seen online. If you\u2019ve ever done that or been tempted to do that, let me just say: DON\u2019T. <\/p>\n

If Google catches it, they\u2019ll not only flag the review, they\u2019ll tank your website rankings. And now, the Federal Trade Commission is proposing<\/span><\/a> to slap big fines on businesses that do it (up to 50k for each fake review\u2026 YIKES!). <\/p>\n

I also saw during the pandemic that business owners were falsely collecting PPP and ERC loans to get a free handout from the government when they didn\u2019t actually need it. The IRS is on the hunt for those kinds of people right now \u2014 look at this 53 million in PPP fraud<\/span><\/a> case in north Texas. <\/p>\n

What I\u2019m getting at here is you don\u2019t have to choose these routes to help your business in difficult times. And even though times continue to be difficult financially, there are options for you to help your business survive the inflationary chokehold on it.<\/p>\n

That\u2019s where I want to go today. Instead of cutting corners, let\u2019s talk about cutting costs and helping you find your way right now.<\/p>\n

Cutting Costs in Your Atlanta Business Right Now<\/strong><\/span>
\u201cThe slightest adjustments to your daily routines can dramatically alter the outcomes in your life.\u201d – Darren Hardy <\/i><\/span><\/p>\n

Nobody needs to remind us small-business owners that we\u2019re yet again in tough times\u2026 still dealing with inflation at about 4% year over year, coupled with nagging and sporadic supply-chain problems and all the other troubles that go with having your own company. <\/span><\/p>\n

Tough times often mean tough decisions. If you have to make cuts, where and how do you decide to do that \u2014 for the good of your company, your staff, and yourself?<\/span><\/p>\n

The following are some areas you should consider.<\/span><\/p>\n

Cutting Costs Tactic #1:<\/strong> Pricing<\/strong><\/span><\/p>\n

Let\u2019s look at the other side of the coin for a second: raising prices. I know what you\u2019re thinking, but raising prices doesn\u2019t raise eyebrows like it did a few years ago. The key question that remains is: Raise by how much? <\/span><\/p>\n

Before you calculate your own new higher average costs and just slap that down across the board, ask yourself:<\/span><\/p>\n

Do you stand out? What makes you special? Why should your customer pay you?<\/i> Special services are worth more, and customers know it. Loyal customers will pay more, too \u2014 for a while. <\/i><\/span><\/p>\n

What\u2019s your competition\u2019s price point and range, and how does it compare with yours?<\/i> If yours is higher, don\u2019t automatically assume that you have to match your competitors\u2019 deals. Do you offer your customers something the other guy doesn\u2019t? (Be honest.) What do you offer that draws in most of your new customers? <\/span><\/p>\n

When raising prices, do it gradually and be upfront with customers about price hikes. People will put up with more if they\u2019re kept informed. <\/span><\/p>\n

It\u2019s possible that maybe your product line needs a revamp. Low sales figures are your first obvious sign of a poorly performing product. Other signs include marketing costs that are too high or price points that are too low. Also watch for bad customer reviews. <\/span><\/p>\n

Cutting Costs Tactic #2: Making shifts with suppliers<\/strong><\/span><\/p>\n

Lately, these folks seem intent on hiking prices at will. You may also be dealing with years of consolidation, another ingredient for our perfect storm. <\/span><\/p>\n

Suppliers may have a lot of companies wanting their goods right now. What if you don\u2019t negotiate with suppliers but their other customers do? You can wind up with poorer products or service with higher prices as your supplier makes up for deals they cut with your competitors. <\/i><\/span><\/p>\n

Before you negotiate with suppliers, though, set a price in your head that you\u2019re willing to pay. Double-check that your payment record is good and learn all you can about your suppliers\u2019 expenses. (Wholesale prices are easing but still went up 2.3% in the past year.)  <\/i><\/span><\/p>\n

Cutting Costs Tactic #3: Looking at your staff<\/strong><\/span><\/p>\n

If it comes to this point, there\u2019s probably more arithmetic in reducing pay\/hours than any other cost cutting. Who does what and for how long? Who could do each other\u2019s jobs for less money? Communicate with your team that keeping the lights on is more important than temporary payroll reductions; you might even find one or two people willing to volunteer cuts. <\/span><\/p>\n

Other moves: <\/span><\/p>\n